Question 1: Maria's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. 1) The actual amount spent for Material A was: 2) The explanation that lower-quality materials were purchased is most likely for which material and why? 3) Make the appropriate standard costing journal entries for material C. Question 2: Different management levels in Cromwell's, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows: Budgeted output units 3,200 units Budgeted fixed manufacturing overhead $20,000 Budgeted variable manufacturing overhead $5 per direct labor hour Budgeted direct manufacturing labor hours 2 hours per finished good unit Fixed manufacturing costs incurred $26,000 Direct manufacturing labor hours used 7,200 Variable manufacturing costs incurred $35,600 Actual units manufactured 3,400 4) Compute the variable overhead variances 5) Make the variable overhead journal entries 6) Compute the fixed overhead variances